Occupation Tax of Professionals Employed in the Government Services

1970 BIR RULING NO. 008-70 Professionals Employed in the Government Services : Liability to the Occupation Tax Professionals employed in the government service who use or exercise the knowledge of their profession in their employment are subject to the occupation tax imposed in Section 182(B) of the Tax Code, as amended by Republic Act No. 6110. The fact that such professionals do not engage in the private practice of their professions in view of the prohibition under the civil service law and rules does not exempt them from the payment of the tax. The application of the knowledge of their profession in the exercise of the duties and functions is considered practice of their profession, although such practice is limited to their employment. casia It should be noted that the former provision of Section 182(C)(7) of the Tax Code which exempted from the occupation tax persons employed in any branch of the service of the Government of the Philippines whose entire professional services are devoted exclusively thereto or are applied under its direction, has been deleted by Republic Act No. 6110. Such deletion is sufficiently explicit and indicative of legislative intent to tax professionals in the employ of the Government.